Solend and Bancor Drama: Did These DAOs Violate the Ethos of Crypto‪?‬ Unchained

Derek Hsue, cofounder at Reverie, discusses the recent controversial decisions by Solend DAO and Bancor, the importance of establishing processes for black swan events, and whether decentralized governance truly exists. Show highlights:
what situation prompted Solend to feel it was in jeopardy
what Solend DAO’s response was to that situation
why Derek views it as “the nuclear option”
why the proposal sparked an outcry from the crypto community
whether this issue could have been prevented or managed differently if the protocol was built on a blockchain other than Solana
why, a day later, the DAO reversed its first decision to take over the whale’s account
whether Derek thinks the DAO made the right decision to not take over the whale’s account
what is Impermanent Loss Protection, a feature offered by Bancor
why Bancor decided to pause Impermanent Loss Protection
whether Celsius and 3AC had anything to do with Bancor’s problem
how Bancor’s decision was made unilaterally
how DAOs should deal with black swan events
 
 
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EPISODE LINKS  
Derek
Twitter: https://twitter.com/derek_hsue

 
Reverie
Website: https://www.reverie.ooo/

Twitter: https://twitter.com/hi_reverie

 
Solend DAO Situation
Covered on Monday’s Unchained Newsletter: https://unchainedpodcast.com/does-this-dao-deserve-emergency-power%e2%81%89%ef%b8%8f/

Proposal to invalidate the first one: https://decrypt.co/103330/solana-lending-dao-overturns-vote-to-take-over-at-risk-whale-wallet

The whale moved $25 million from Solend: https://www.theblock.co/post/153207/solana-whale-shuffles-25-million-to-reduce-risk-to-defi-protocol-solend

 
Bancor Pausing Impermanent Loss Protection
Bancor’s post: https://blog.bancor.network/market-conditions-update-june-19-2022-e5b857b39336

Anthony Sassano’s reaction: https://twitter.com/sassal0x/status/1539082583832526848?s=20&t=OzTV6M5bCH4fxJIJUtLA4Q

 
DAO Governance issues:
Lido DAO proposes to reduce the existing scope of governance of its token holders: https://research.lido.fi/t/ldo-steth-dual-governance/2382

Jack Niewold 's thread: https://twitter.com/JackNiewold/status/1539307339928457217?s=20&t=OzTV6M5bCH4fxJIJUtLA4Q

Unchained Coverage: How Soulbound Tokens Could Reduce Speculation and Improve DAO Voting – Ep.360: https://unchainedpodcast.com/how-soul-bound-tokens-could-reduce-speculation-and-improve-dao-voting-ep-360/

 
 
Main tweet
On this Friday’s Unchained, Derek Hsue explains:
* why the first Solend DAO vote was the “nuclear option”
* whether Solana’s history of downtime spurred the proposal
* Bancor’s decision to stop Impermanent Loss Protection
* what this all means for DAO governance
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